How I Became An Expert on Dealers

Get Bad Credit Car Finance from a Dealership

Today, many Americans do not have credit due to one reason or the other. In fact, most people don’t – and it’s nothing to be ashamed of. There are thousands of reasons why you may have bad credit, but that’s not were going to go over today.

It is important to find out whether you qualify for a car loan prior to starting your search for a car. Generally, dealers can offer you bad credit loans to allow you to own the vehicle you have always wanted. Here are some things you should know prior to apply for bad credit finance from a lender.

Get your Credit Report
You should find out your credit score and check the credit history before starting to shop for a car. If you think you might have bad credit, it’s even more crucial to be prepared. Getting a good car deal from the dealership can be difficult if you do not know you have bad credit but the dealership knows. The most profitable car deals are given to people with less than perfect credit.
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What Lending Risk Do You Pose?
What is the next step after getting your credit report? Depending on your credit score, you can either be a prime or subprime borrower. Prime borrowers are those who have a credit score of over 680. Subprime borrowers are those with a credit score of below 680. If you are a subprime borrower, the chances of getting a great deal from a dealership are quite slim. Subprime borrowers don’t always qualify for the best rates and financing terms. This is usually the way dealers operate. However, this is not to say that a dealership should take advantage of you because you have poor credit.
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Having Bad Credit Does Not Mean Paying the Full MSRP

Some people who have bad credit get taken advantage of by unscrupulous dealers. For instance, a dealer may indicate that the customer has to pay the full MSRP due to the bank’s regulation. This is a lie that you should not fall into. No bank has any stipulations on how much the dealer has to charge you for a car. Moreover, banks would not stipulate that bad credit borrowers should pay the full sticker price. In fact, banks would want you to pay less since you already have poor credit. If anything, they want you to pay less.

Financing Approval is Only for Extended Warranty

This is one of the tricks that most dealers like using. You are likely to make the dealer a lot of profits if you fall for this lie. You should walk out of a dealership that insists you have to purchase extended warranty for you to qualify for car financing.

The above are some tips you should know when going to apply for dealership financing.